ULTIM GROUP

2023

Generation spanning, cross market

solutions for private, public and

institutional clients.

ULTIM GROUP

Welcome to UTG,

Your specialised advisory for

asset protection & securitization.

Ultim Group provides individual asset protection

and securitization solutions for private-, public-

& institutional clients.

This publication will outline the Ultim Asset Protection

Methodology, its application to todays securitization

tasks and modern underwriting instruments.

> Ultim Portfolio Solutions

07.05.2023

ULTIM GROUP

Why wealth securitization?

Wealth securitization is a process of transforming assets

into tradable securities, allowing for greater liquidity and

flexibility in their use. This technique is often used in the

formation of Asset Protection Trusts, where assets are

pledged to a special purpose vehicle. This Trust is a

unique format of a Trust that protects the assets from

any potential creditor claims. The receivables from this

Trust can be directed towards any beneficiary, such as a

financial instrument like a Protection Certificate.

The pledged assets within this structure can be valued and

insured, which can be used for refinancing purposes

against intangible assets that are not immediately liquid.

These advantages provide greater flexibility and security for

individuals or businesses seeking to protect and manage

their assets effectively.

> Ultim Portfolio Solutions

07.05.2023

ULTIM GROUP

Asset securitization and capital refinance

Ultim Group is a principal advisory that assists clients in

developing sustainable solutions for their wealth management and

expansion needs. One of the methods Ultim uses is called "Asset

Securitization." In this approach, Ultim works with the client to

consolidate physical and monetary assets into Special Purpose

Vehicles (SPVs), licenses and IP into concession companies

(License Boxes), and financial instruments into a self-securing

underwriting entity called the "Guarantee SPV."

Unlike traditional Hedge-Fund or LBO approaches, Asset Protection

methodology employs different, also cross-national SPVs in a

synchronized transaction, allowing for greater flexibility. This form of

Asset-Securitization is a flexible method for the activation of passive

assets while using the protection funds' emission vehicle to enter

capital refinance.

With Asset Protection methodology, several assets from

different classes can be consolidated and fully reflected within

one holistic financial instrument, such as a Corporate Bond,

Protection Certificate, or Security Token. At the end, the

insured financial instruments, not the assets themselves,

represent the portfolio towards the financial market.

Assets securitized under the Asset Protection methodology

will never be exposed to risk and remain independent from

market indices and benchmarks, while an already rated

Insurance instrument takes their place. Overall, Asset

Protection methodology is a flexible and secure approach for

individuals or businesses seeking to manage and protect their

assets effectively.

> Ultim Portfolio Solutions

407.05.2023

ULTIM GROUP

The Securitization advantage

UTG provides:

• Portfolio consolidation and securitization through SPV companies.

• Brokering a wide range of credit insurance instruments.

• Arrangement of ABS/MBS securities for asset securitization in trusts.

• Operates as execution only Advisory for Conventional Instruments,

IPO/MBP/LBO, Corporate Debt & Tokenized Solutions

• Support in the qualification and creation of all necessary concession

subjects for structured finance, STO and IPO

Appropriately named the "Asset Protection" methodology, it serves as

the flagship solution offered by the Ultim group of companies, acting as

your Principal Advisor. The Asset Protection approach ensures long-

lasting security and adheres to the stability and compliance criteria set

forth by financial regulators. As a result, the Protection Fund is the

preferred instrument for private offices, foundations, funds, and central

banks.

In the financial realm, the Ultim Wealth Protection and Asset Securi-

tization model stands in a league of its own. This innovative approach

allows pledged assets to consist of up to 85% intangibles, while

providing unparalleled security in the market. Each asset secured

within an Asset Protection underwriting mechanism can be insured

by an "A" rated insurance instrument from Lloyds, BMI, Qatar-Re, or

Cedent. Additionally, these assets can be held within a generation-

spanning wealth management vehicle, which can act as both a

guarantor and facilitator, connecting with the financial industry in

various ways.

Through a strategic structure of special purpose vehicles, the protected

wealth can be used for expansion and growth in clients' businesses in the

form of structured instruments, such as guarantee certificates or highly-

rated debt instruments. This self-securing concept is a direct response to

lessons learned from recent financial crises and is an ideal medium for

pension funds and public finance agencies seeking to protect assets and

maintain stability..

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507.05.2023

ULTIM GROUP

Creating a Consolidated Portfolio

with Capital Protection

Ultim is helping clients in the

consolidation of their portfolio. As part of

our mandate, ultim can arrange rating

and activation of assets depending on

the clients perceptions. Assets of

different classes will be destilled into

securities and represented through a

bankable instrument as capital on the

clients audited balance sheets.

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07.05.2023

Overlay

Management

Real Estate &

other fixed

income Assets

Securties,

Digital Assets,

Derivatives

Currencies,

Futures, Gems

Patents,

Stakeholdings,

Industry

participations

Capital Protection Instrument

ULTIM GROUP

Advantages of Creating a consolidated

portfolio with Capital Protection

Large portfolios - if not properly managed

may rarely perform returns if not exposed to

risk. With the protection trust methodology, a

portfolio remains protected, liquid and

performing. A Protection Trust owner

remains always in control of his portfolio and

can operate independent from institutional

support

> Ultim Portfolio Solutions

07.05.2023

Fixed Income

Tax Burden

Cash Positions

Securities

Interest

Payments

Total Portfolio

Performance

Asset Fundament

Overlay Management

Insurance Instrument

Liquidity

ULTIM GROUP

Client Profile:

The client holds a portfolio of real estate, with a leverage model

based on real estate project development. To finance or secure

projects, the client utilizes external finance and a midterm exit

strategy. The majority of their capital is tied up in real estate, and a

certain percentage must provide debt service. Including liabilities,

the portfolio's ROI exceeds 5% per annum.

Leverage Model Involving Conventional Debt Financing:

The client establishes a Special Purpose Vehicle (SPV) company to

hold the future project development. They enter into a relationship

with a bank to secure financing. As the project developer, the client

must provide collateral from their real estate portfolio. The bank

conducts thorough due diligence on the project and collateral

assets. A qualified exit strategy is advantageous, and a potential

exit-buyer or tenant is a crucial aspect of due diligence.

After this process, the bank uses the real estate as collateral,

potentially placing an entry in the land register or requesting a title

on charge on land. This creates an encumbrance on the real estate

portfolio. Moreover, the bank requires a significant amount of

equity (often a minimum of 30% of the facility's face value).

Disadvantages of Debt-Based Models:

→ Higher overall financing costs and charges on the

collateral.Encumbrances on the real estate make the

portfolio less flexible.

→ The investment may not achieve expected returns.

→ The financing volume may be insufficient.

→ In a critical scenario, encumbered assets could hinder

other developments due to one distressed project,

increasing the risk of default caused by temporary

illiquidity.

807.05.2023

> Ultim Portfolio Solutions

ULTIM GROUP

B Portfolio Management and expansion

using the asset protection trust:

Securitized Assets Model:

In comparison, a securitized assets model provides more flexibility

for the client. By utilizing the Ultim Wealth Protection and Asset

Securitization model, the client can achieve better security without

the encumbrances associated with conventional debt financing.

The assets can be insured by an "A" rated insurance instrument,

and the protected wealth can be used for expansion and growth in

the form of structured instruments, such as guarantee certificates

or highly-rated debt instruments.

In conclusion, a securitized assets model provides more

advantages and flexibility for the client than conventional debt

financing, particularly when managing a real estate portfolio. The

Ultim Wealth Protection and Asset Securitization model allows for

better security and growth potential while minimizing the risks and

encumbrances associated with traditional debt-based models.

Advantages of Securitized Assets Model:

→ Lower financing costs compared to conventional debt financing.

→ Greater flexibility in the real estate portfolio due to fewer

encumbrances.

→ Enhanced potential to achieve expected returns on investment.

→ More suitable financing volume tailored to the client's needs.

→ Reduced risk of default caused by temporary illiquidity in a

critical scenario.

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ULTIM GROUP

Protection Trust

Financial Services SPV

Concession SPV

Industry or Asset

Holding SPV

Guarantee SPV

Asset SPV 01

Asset SPV 02

Asset SPV 03

Protection Certificate

Cash Assets

Credit Enhancement

Concessions &

Licenses

Protection Trust SPV roles and

Asset Securitization Structure

This SPV will than be positioned in a

specific capital market. Oposite to this

structure, the protection fund concept is

distributing the elements of a

securitization structure into Different

entities, allowing the individual placement

or protection of essential asset classes,

while a strong protection instrument is

covering the whole transaction. Therefore

the Security will be placed in a dedicated

SPV, that becomes the underwriter for all

other entities within this converging

transaction.

In a classic securitzation scenario, more than one

SPV will be incorporated that will receive

underwriting and creditenhancement without a

strong protection component.

> Ultim Portfolio Solutions

1007.05.2023

ULTIM GROUP

The Ultim approach of the capital protection trust is a worldwide

acknowledged methodology for commercial and institutional

portfolio securitization.

Based in England, Switzerland, the UAE, Hong Kong and the

USA, Ultim can be understood as an international structuring

partner and advisory firm for Institutional Clients, High

Networth Individulas, Government-Agencies and Banks

covering the total process of Securitization and generation

spanning – grows oriented – Asset Management and Asset

protection.

Ultim‘s structured fiance division operates as the leading

entity within the Ultim Group of companies at the structuring

partner for securitization operations and „ Bankable Securi-

ties“ and is interfacing the regulated financial markets as a

submission agent for the registration of securities and

financial insurance istruments.

The Ultim Asset Management model is based on the establishment

of a consolidated Addet fundament, backing the overlay

management by providing leverage through (structured) capital

refinance. This serves as an excellent platform for the different

Asset Management strategies, such as Real-Estate-,hedge-fund or

LBO/MBO approaches.

> Ultim Portfolio Solutions

07.05.2023

ULTIM GROUP

07.05.2023

Get in touch with our Advisory team to

discuss our approach to a fully

compliant Asset Management concept

that is more digistible for banks.

clients@ultim.group

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ULTIM GROUP

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A publication of:

UTG

The Ultim Advisory Group

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17 King Edwards Road, London, HA4 7AE

United Kingdom